The election of Donald Trump threw Federal Reserve officials into a scramble to determine what it meant for the American economy, the world, and the U.S. central bank's own standing, according to transcripts of Fed meetings from 2016.
At the Fed's policy meeting a month after Trump's Nov. 8, 2016 victory, there were jokes about the unexpected outcome, warnings of the deep fissures it showed in the U.S. economy and the challenges it might pose to the central bank's independence.
The market reaction - a jump in stock prices - took some at the central bank by surprise, while others noted that their business contacts "used words like 'exuberance' and 'euphoria,'" because they expected lighter regulation and lower taxes, said Jeffrey Lacker, president of the Richmond Fed at the time.
The wind came out of the sails in 2019 as Trump's trade policies slowed global growth, validating some of the concerns noted by Fed officials in the aftermath of his victory over Democratic presidential nominee Hillary Clinton.
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